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Institutional investors have until Wednesday, December 4 evening to subscribe the shares of Aramco before its IPO. The investment in the capital of the Saudi oil giant has been erected as a patriotic duty by the kingdom's authorities, but it arouses very little enthusiasm among investors.
Despite the flashy commercials and loan facilitation offered by banks, the interest of local investors in Aramco's shares is very limited. Faced with this demand that does not take off, the leaders of the Saudi giant have for the moment canceled plans for introduction on a stock exchange in the United States or Europe, focusing almost entirely on Gulf investors.
The company with huge profits is looking to raise $ 25 billion, a quarter of the $ 100 billion expected. Revenue is barely enough to cover Saudi Arabia's budget deficit for a year, experts say.
The collection could put the national flagship at the same rank as Alibaba. China's online trading specialist broke the world record for stock market listings with $ 25 billion raised in 2014.
The valuation announced by the crown prince corresponded to a very very implausible scenario, it would require very high prices of crude oil for this valuation to be made.
Pierre Terzian, director of the review "Petrostrategies" 03/12/2019 - by Agnieszka Kumor Play
For Aramco, the final price of the stock should be announced Thursday, December 5, before the trading of securities on the stock market should begin next week.